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HomeMy WebLinkAbout1997-132FILE REFERENCE FORM 97-132 X Additional File Exists FILE(S) Additional File Contains Records Not Public, According to the Public Records Act Other Date Initials First Amendment to Lease Agreement — Ordinance No. 98-431 12/08/98 J R Second Amendment to Lease Agreement — Ordinance No. 2003-230 07/22/03 ) R Assignment of Leasehold Interest — Ordinance No. 2004-379 12/07/04 J R Correction and Clarification of Leasehold Interest in Airport Lease — original attached to Ordinance No. 2004-379 04/06/05 JR Aero Properties Lease terminated — Ordinance No. 2005-376 12/13/05 ) R NOTE First Amendment to Lease - 98-431 NOTE Amendment to Lease - Ordinance No 2001-116 ORDINANCE NO. 9 7— 43 v2 AN ORDINANCE AUTHORIZING THE CITY MANGER TO EXECUTE AN AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND EZELL AVIATION INCORPORATED FOR APPROXIMATELY 8.2 ACRES OF PROPERTY LOCATED AT THE DENTON MUNICIPAL AIRPORT, WHICH PREEMPTS THE LEASE ASSIGNED PER RESOLUTION NO. 97-020 TO EZELL AVIATION, INC FROM FOX-51 LIMITED; AND PROVIDING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS - SECTION I That the City Manager is authorized to execute an airport lease agreement between the City of Denton, Texas for approximately 8 2 acres of land located at the Denton Municipal Airport, under the terms and conditions contained within this agreement, which is attached hereto and made a part hereof SECTION H. The lease assignment per Resolution No 97-020 to Ezell Aviation, Inc from Fox-51 Limited is hereby preempted SECTION HI That this ordinance shall become effective immediately upon its passage and approval // PASSED AND APPROVED this the (O-/— day of _> 1997 JA ILLER, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY JBY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY oa4ed Z D X"Dm$\O� WC AIRPORT LEASE AGREEMENT COMMERCIAUFBO WHEREAS, the City of Denton, Texas as Lessor and Ezell Aviation, Incorporated , as Lessee, desire to enter Into an airport lease agreement which amends the terms and conditions of the lease approved by Ordinance No 97-120 between the City of Denton and fox-51 Limited which was assigned by the Lessor on April 15, 1997, per Resolution No 97-020 to Ezell Aviation, Inc, NOW THEREFORE This lease and agreement is made and entered Into this �Pday of 1997, but effective May 1, 1997, by and between the City of Denton, a Municipal in, situat Denton County, Texas hereinafter called "Lessor, and Ezell Aviation, Incorporated, a corporation of the ttate of Texas located at Stephens County Airport, Post Office Box 1793, Breckenridge, Texas, and whose registered agent is Nelson Ezell, located at Stephens County Airport, Post Office Box 1793, Breckenridge, Texas, hereinafter referred to as "Lessee " In consideration of the premises and the mutual covenants, the parties agree that the land to be leased is the following described land situated In Denton County, Texas I PREMISES AND USE U11111111137r. • . i i TRACT "A" A 100 x 200 foot tract of land being approximately 20 000 square feet, and a 165 x 220 foot tract of land, being approximately 36,300 square feet, having a combined area of approximately 56,300 square feet or 129 acres, described as follows COMMENCING at the northwest corner of a tract of land as conveyed to P F Breen by deed recorded In Volume 127, Page 185 of the Deed Records of Denton County, Texas said point lying in the South right of way line of FM Road 1515, THENCE west along the south right of way line of FM Road 1515 a distance of 350 feet to a point, THENCE north along the west right of way line of FM Road 1515 a distance of 1 000 feet to a point, THENCE west perpendicular to said right of way line of FM 1515 a distance of 870 feet more or less, to a point on the east edge of the pavement of the north taxiway, THENCE north 1305041" west along the east edge of pavement of said north taxiway a distance of 10 feet to a point for a comer, THENCE north 76009'19" east perpendicular to said east edge of pavement a distance of 175 feet to the point of beginning, THENCE north 13050'41" west 175 feet east of and parallel to said east edge of pavement a distance of 220 feet to a point for a corner, THENCE north 76009'19" east perpendicular to said east edge of pavement a distance of 5 feet to a point for a corner, THENCE north 13050-41" west 180 feet east of and parallel to said east edge of pavement a distance of 200 feet for a point for a corner, THENCE north 76009119" east perpendicular to said east edge of pavement a distance of 100 feet to a point for corner, THENCE south 13050'41" east 280 feet east of and parallel to said east edge of pavement a distance of 200 feet to a point for a comer, THENCE north 76009'191' east perpendicular to said east edge of pavement a distance of 60 feet to a point for a corner, THENCE south 13050'41" east 340 feet east of and parallel to said east edge of pavement a distance of 220 feet to a point for a corner, THENCE south 76009'19" west perpendicular to said east edge of pavement a distance of 165 feet to the place of beginning and containing 56,300 square feet of land, more or less, as shown on Exhibit "A", attached hereto and Incorporated herein by reference PLUS, TRACT "B" All that certain tract or parcel of land lying in the T Toby Survey, Abstract Number 1285, City of Denton, Denton County, Texas, as shown in Exhibit B (Tract "B"), and described as follows COMMENCING at the northwest comer of a tract of land as conveyed to the Nobles Company by deed recorded in Volume 2798, Page 695, Real Property Records, of Denton County, Texas said point lying In the south line of F M Road 1515, THENCE north 88033'43" west with the south line of said F M Road 1515 a distance of 265 14 feet, THENCE north 01050'39" west along and near a fence on the east line of Tom Cole Road a distance of 1000 00 feet, THENCE south 88009'21" west a distance of 902 71 feet to a corner on the east line an asphalt taxiway, THENCE north 12025'00" west with the east line of said taxiway a distance of 274 35 feet THENCE north 77035'00" east a distance of 340 00 feet to an von pin set for southwest corner of a tract of land described as property A in Resolution No R91-052, 8-20-1991, City of Denton Denton County Texas and the point of beginning of the herein described tract, THENCE north 77035'00" east a distance of 389 60 feet to a point for a corner, THENCE south 17035'52" east a distance of 115 49 feet to an iron pin found at the southeast corner of a tract of land described as property B in Resolution No R91-052, 8-20-1991 City of Denton, Denton County Texas and the point of beginning of the harem described tract, EZELL AVIATION, INC LEASE AGREEMENT - PAGE 2 THENCE south 55035'52" west a distance of 280 53 feet to an iron pin for a corner, THENCE south 77°36'29" west a distance of 139 91 feet to an iron pin for corner, THENCE north 12025'00" west a distance of 220 01 feet to the Point of Beginning and containing 73,766 18 square feet or 16934 acres of land PLUS, TRACT"C" All that certain tract or parcel of land lying in the T Toby Survey, Abstract Number 1285, City of Denton, Denton County, Texas, as shown In Exhibit B (Tract "C"), and described as follows COMMENCING at the Northwest comer of a Tract of Land as conveyed to the Nobles Company by deed recorded in Volume 2798, page 695, Real Property Records of Denton County, Texas said point lying in the south line of F M Road 1515, THENCE, north 88.33"43 seconds west with the south line of said F M Road 1515 a distance of 265 14 feet, THENCE, north 01 950' 39" west along and near a fence on the east line of Tom Cole Road a distance of 1000 0 feet, THENCE, south 88"09'21" west a distance of 902 71 feet to a corner on the east line of an asphalt taxiway, THENCE, north 12"25'00" west with the east line of said taxiway a distance of 274 35 feet, THENCE, north 77.35'00" east a distance of 340 00 feet to an iron pm at the northwest corner of a tract of land described as property B in Resolution No R-91-052, City of Denton Denton County, Texas, THENCE, south 12025'00" east, with the west line of said 16928 acre tract a distance of 222 00 feet to an Iron pin found at the southwest corner of said 16928 acre tract and the point of beginning of the herein described tract, THENCE, south 77°degrees 44'34" west a distance of 154 52 feet to an von pm set for the northwest corner of the herein described tract, THENCE, south 12825'00" east a distance 200 00 feet to an von pin set for the southwest corner of the herein described tract, THENCE, north 7703629" east a distance of 530 00 feet to an von pm set for the southeast corner of the herein described tract, THENCE, north 07s49'03" west a distance of 306 14 feet to an Iron pin found at the southeast corner of said 16928 acre tract a distance of 280 54 feet to a found pin, THENCE, south 55035'29" west with the south line of said 16928 acre tract a distance of 280 54 feet to a found iron pin, THENCE, south 77036'29 seconds west with said south line a distance of 139 90 feet to the point of beginning and containing 120,841 858 square feet, or 2 7741 acres of land EZELL AVIATION, INC LEASE AGREEMENT - PAGE 3 The Fixed Base Operator tract, as described in Section I A, will comprise of a total of 250,908 038 square feet or approximately 5 7569 acres Together with the right of Ingress and egress to the property, in common with others so authorized, of passage upon the Airport property generally, subject to reasonable regulations of Lessor This right shall extend to Lessee's employees, passengers, patrons, and invitees Lessor does hereby demise and let unto the Lessee, and Lessee does hereby lease and take from the Lessor, the land and facilities herein described, and the rights, licenses, and privileges in connection with the use of such property and Improvements as follows The use, in common with others authorized so to do, of said airport and all appurtenances facilities, Improvements, equipment and services which have been or may hereafter be provided thereat The operation of a transportation system by aircraft, the repaving, maintaining, conditioning, servicing, parking or storage of aircraft or other equipment, the training of personnel and the testing of aircraft and other equipment, the sale, disposal or exchange of aircraft engines, accessories, and related equipment, the servicing by Lessee of aircraft and other airport related equipment, Including the right to Install and maintain on said airport adequate storage facilities and appurtenances, including right of way necessary therefor the landing, taking off, parking, loading, and unloading of aircraft and other equipment, the right to load and unload persons, property and mail at said airport, by such means as Lessee may desire, with the right to designate the carriers who shall transport Lessee's passengers and their baggage to and from the airport, and, also, the further right to designate the carriers who shall transport Lessee's airborne freight, if any, to and from the said airport, the right to install and operate advertising signs, the general type and design of such signs to be reasonable and appropriate, the conduct of any other aviation related business or operations reasonably necessary to the proper necessary and appropriate conduct and operation by Lessee of its business, and without in any way limiting the foregoing, Lessee specifically agrees that, if Lessee elects to engage in or provide any of the above services on the premises herein leased, Lessee will a Provide service to the public on a non-discriminatory basis, b Conduct and operate Its business and management in a courteous and efficient manner c If Lessee provides tie -down service, Lessee will provide tie -down service to overnight or other transient aircraft or aircraft remaining at the airport for twenty-four (24) hours or less, d If Lessee provides aircraft fuel services, Lessee will make available either by tank truck stationary pump or other suitable dispensing equipment approved by the Fire Marshall of the City of Denton, the quality of gasoline and other petroleum distillates normally found at similar airports, and all storage tanks for gasoline and other aviation fuels shall be placed underground in accordance with the provisions of the Fire Code of the City of Denton for underground flammable liquid storage tanks e Lessee may not use any of the leased land or premises for the operation of, a motel hotel, private club or bar, apartment house, or for industrial, commercial or retail purposes, except as authorized herein, without the expressed written consent of Lessor EZELL AVIATION, INC LEASE AGREEMENT - PAGE 4 f Lessee shall have the non-exclusive right to construct and operate a restaurant on the leased premises during reasonable hours as agreed to by Lessee and Lessor g Lessee shall install, maintain, and operate proper radio and meteorological equipment to man (monitor and respond) the Airport Unicorn, frequency 122 7 Lessee will operate the Urncom during normal Airport operating hours, Monday through Friday, 8 00 A M to 5 00 PM Lessee will have the non-exclusive right to conduct Unicom operations on the above identified frequency Lessee is hereby authorized to construct upon the land herein leased, at its own cost and expense, buildings, hangars, and structures, Including fuel storage tanks or other equipment that Lessor and Lessee mutually agree are necessary for use in connection with the operations authorized by this lease, provided, however, before commencing the construction of any improvements upon the premises, Lessee shall submit a all plans and specifications showing the location upon the premises of the proposed construction, and b the estimated cost of such construction No construction may commence until Lessor, acting by its City Council, has approved the plans and specifications and the location of the improvements, the estimated costs of such construction, and the agreed estimated life of the budding or structure Documentary evidence of the actual cost of construction shall be delivered by Lessee to Lessor's City Manager from time to time as such costs are paid by Lessee, and Lessors City Manager is hereby authorized to endorse upon a copy of this lease filed with the City Secretary of Lessor such actual amounts as he shall have found to have been paid by Lessee, and the findings of said City Manager when endorsed by him upon said contract shall be conclusive upon all parties for all purposes of this agreement ro�• ,�Z7 11 riar IWTT, .I 9m, I TRACT "D" Commercial Tract "D" - Developed Land subject to Lease Payments All that tract or parcel of land lying in the T Toby Survey, Abstract Number 1285, City of Denton, Denton County, Texas, as shown in Exhibit C (Tract "A"), and described as follows COMMENCING at the northwest comer of a tract of land as conveyed to the Nobles Company by deed recorded in Volume 2798, Page 695, Real Property Records of Denton County Texas said point lying In the south line of F M 1515, THENCE north 88033'43" west with the south line of said F M 1515 a distance of 265 14 feet, THENCE north 0105019" west along and near a fence on the east line of Tom Cole Road a distance of 1000 00 feet, THENCE south 88009'21" west a distance of 902 71 feet to a corner on the east line an asphalt taxiway, THENCE north 12025'00" west with the east line of said taxiway a distance of 274 35 feet, EZELL AVIATION, INC LEASE AGREEMENT - PAGE 5 THENCE north 77036'00" east a distance of 280 00 feet to an iron pin set for southwest corner of a tract of land described as property A in Resolution No R91-052,8-20-1991, City of Denton, Denton County Texas and the point of beginning of the herein described tract, THENCE north 12°25'00" west a distance of 240 00 feet to a point for a corner, THENCE north 77035'00" east a distance of 427 15 feet to a point for a corner, THENCE south 17035'52" east a distance of 240 98 feet to a point for a corner, THENCE south 77035'00" west a distance of 448 93 feet to the Point of Beginning and containing 105,131 154 square feet or 2 4135 acres of land Together with the right of ingress and egress to the property, in common with others so authorized, of passage upon the Airport property generally, subject to reasonable regulations of Lessor This right shall extend to Lessee's employees, passengers, patrons, and invitees ,uu: I,. ,, =RMS91 Lessee is granted the non-exclusive privilege to engage in or provide the following Hangar lease and Rental The rental or lease of hangars and hangar space and related facilities upon the leased premises Office Space Lease or Rental The rental or lease of office space in or adjoining Lessee's hangars Aircraft Storage and Tie -down To provide parking, storage and tie -down service, for both Lessee's and itinerant aircraft upon or within the leased premises Lessee, his tenants and sublessee shall not be authorized to conduct any services not specifically listed in this agreement The use of the lease premises of Lessee, his tenants or sublessee shall be limited to only those private, commercial, retail or Industrial activities having to do with or related to airports and aviation No person, business or corporation may operate a commercial retail or Industrial business upon the premises of Lessee or upon the Airport without authorization from the Lessor in a written form approved by City Council The City shall respond to the request for authorization within sixty (60) days of written notification to Lessor's City Manager If authorization is not received within the required sixty-day time period, authorization of the activity will be considered granted This granting of authorization does not relieve the Lessee or it sublessee successor, or assign of compliance with terms or conditions in this agreement II PREMISES AND LEASEHOLD IMPROVEMENTS A Promise Define For the purposes of this lease the term "Premises" shall mean all property located within the metes and bounds described above in Section I, including leasehold improvements constructed by the Lessee, but not including certain easements or property owned or controlled by the Lessor EZELL AVIATION, INC LEASE AGREEMENT - PAGE 6 4 B Improvement Requirements In making any Improvements on the Premises, Lessee shall comply with the following 1 All requirements of the Lessor's Land Development Code, other than platting requirements, Including but not limited to Lessor's Building, Fire, Electrical, and Plumbing Codes and other Codes and ordinances applicable to the improvements to be made, including the payment of any fees established by ordinance 2 Prior to commencing development, Lessee shall obtain the City Council's determination that the Improvements conform to and are compatible with the overall size, shape, color, quality, design appearance, and general plan of the program established by the Lessor's Master Plan for the Airport 3 Any rules or regulations of the any Federal or State agency having jurisdiction thereof 4 Construction of drainage improvements, as required by City's subdivision rules and regulations located at boundary between FBO Tracts "B" and "C" to be completed June 1, 1998 The construction of an addition to the existing FBO facility of approximately 7,000 square feet to be completed June 1, 1998 Construction of a new hangar of approximately 44,000 square feet to be completed June 1, 1998 The City of Denton agrees to pay ten (10) percent of construction costs of the drainage improvements which are described in paragraph 4 above These costs will not be eligible for payment until they have been reviewed and found to be accurate and reasonable by the City of Denton Engineering Department Such costs will not be paid until completion of improvements listed in 4, 5, and 6 above The ten (10) percent credit will be refunded in twelve monthly Increments by reduction of the monthly land lease payments to begin the first month after completion of 4, 5, and 6 above DiliR7C•77_RTt1T1IT7�R�A The required determination by the City Council that the plans are compatible with the Master Plan for the Airport shall be made by the Council within sixty (60) days of proper submission of the plans to Lessor If the Council falls to act within the sixty (60) days, the plans shall be deemed approved for the purposes of the requirement of compatibility with the Master Plan, but shall not be deemed approved for any other requirement, including the requirement to comply with the Lessor's Land Development Code and other applicable codes All buildings and Improvements constructed upon the premises by Lessee shall remain the property of Lessee unless said property becomes the property of Lessor under the following conditions terms and provisions Removal of Buildinas No building or permanent fixture may be removed from the premises without the written consent of the Lessor EZELL AVIATION, INC LEASE AGREEMENT - PAGE 7 2 AssumRtion All buildings and improvements of whatever nature remaining upon the leased premises at the end of the primary term, or any extension thereof, of this lease shall automatically become the property of Lessor absolutely in fee without any cost to Lessor 3 Bul ding Life It Is agreed that the life of the building to be constructed by Lessee on the property herein leased is a Thirty (30) years for existing FBO and commercial tract Improvements b Forty-five (45) years for new Improvements to be constructed on FBO Tracts A, B, and C Cancellation Should this lease be canceled for any reason before the end of the terms, it is especially understood and agreed that Lessor reserves the right to purchase all buildings structures and Improvements then existing upon the premises by tendering to Lessee [one thirtieth (1/30th) of property on Commercial Tract 0, one forty-fifth (1/45) for the new Improvements constructed on FBO Tracts A, B, and C, and one -thirtieth (1/30) of the existing improvements in FBO Tract A of the undepreaated value of such budding for each year remaining on the agreed life of such building The undepreciated value of all Improvements is to be determined by having such Improvements appraised by three appraisers, one appointed by Lessor, one appointed by Lessee and one appointed by the two appraisers, provided however, the total value of such building plus an increase in value not to exceed fifty percent (50%) of the original cost of such Improvements III. PAYMENTS A. Payments - Fixed Based Operator Premises 1 Fixed Base Operator Land Payment Land Rental payments shall be due and payable in twelve (12) equal monthly installments in advance, on or before the 15th of each month Annual rental payments will be based on the following formulae, calculated on the basis of minimum yearly rentals adjusted for inflation as per Section IV a 05/01/97 - 04/30/2019, $0 061 per square foot minimum yearly rental ($0 061 x 250,908 038 $16,306 40 land rental per year / 12 - $1,275 45 land rental per month ) Land rental will be adjusted in two (2) five-(5) year periods (the first such readjustment occurring May 1 2002, the second at May 1, 2007 and annually thereafter per Section IV of this lease until May 1, 2019 b 05/01/2019 - 04/30/2027. The current lease rate will be increased by a sum of $0 06 per square foot minimum yearly rental, and adjusted annually thereafter per Section IV A of this lease until April 30, 2027 2 Hangar and Tie -Down Rental Fees Ten (10%) percent of all hangar and tie -down rental fees collected by Lessee from customers of Lessee each month during the term of this lease An annual certified statement concerning collection of hangar and tie -down space rentals will be submitted within 60 days of the end of the calendar year or, In the event of termination, 60 days from the date of termination 3 Aviation Fuel Fees Fuel payments shall be based on fuel purchased by Lessee and the Lessee's sublessee, assigns, heirs or successors It will Include all fuel purchased from off -airport fuel vendors The EZELL AVIATION, INC LEASE AGREEMENT - PAGE 8 payment shall be based on the amount of four percent (4%) of net cost of fuel purchased Net cost of fuel purchased Is the cost of fuel not including taxes on the purchase Lessee will provide invoices on a monthly basis along with the payment to the Lessor An annual certified copy of purchases will be submitted within 60 days of the end of the calendar year or in the event of termination, within 60 days from the date of termination u=1 _ •uu: cis 1 : 1 Land Rental Land Rental payments for Commercial Tract "D" shall be due and payable in twelve (12) equal monthly installments in advance, on or before the 15th of each month Annual rental payments will be based, and adjusted, on the following formulae a 05/01/97 - 04/30/2011 $0 08558 per square foot minimum yearly rental ($0 08558 x 105,131 154 = $8,997 12 land rental per year / 12 = $749 76 land rental per month ) Land rental will be adjusted in two (2) five-(5) year periods (the first such readjustment occurring May 1, 2002, the second at May 1, 2007 ) Commercial Land will be readjusted per Section IV of this Lease b 05/01/2011 - 04/30/2027 $0 15 per square foot minimum yearly rental for land described as Commercial Tract "D" on Exhibit "C" Commercial Land will be readjusted annually per Section IV of this Lease IV. PAYMENT ADJUSTMENTS AND TERMS A Adjustments* It is expressly understood and agreed that the yearly rental for the land herein leased shall be readjusted, up or down, on the basis of the proportion that the then current United States Cost of Living Index (CPI-U) for the Dallas/Fort Worth, Texas Standard Metropolitan Statistical Area, as compiled by the U S Department of Labor, Bureau of Labor Statistics, bears to the January 1997, index which was 150 (1982-84 =100) Each rental adjustment, if any, shall occur on the 1st day of May, with respect to the adjustments defined in Section III The adjustments shall be based on the annual cents per square feet based on the square footage for the Fixed Base Operator and the Commercial Tract The adjustments In the yearly rent shall be determined by multiplying the minimum rent as set forth in section in Section III by a fraction, the numerator of which Is the index number for the last available month prior to the adjustment, and the denominator of which is the index number for January 1997 which was 150- (1992-84 = 100) If the product of this multiplication is greater than the minimum yearly rent as set forth In Section III , Lessee shall pay this greater amount as the yearly rent until the time of the next rental adjustment as called for in this section If the product of this multiplication is less than the minimum yearly rent of as set forth in Section III , there shall be no adjustment in the annual rent at that time, and Lessee shall pay the minimum yearly rent asset forth in Section III The adjustment shall be limited so that the annual rental payment determined for any given year shall not exceed the annual rental calculated for the previous year by more than ten percent (10%) If the consumer price index for all urban consumers (CPI-U) for the Dallas -Fort Worth geographical region, as compiled by the U S Department of Labor, Bureau of Labor Statistics, is discontinued during the term of this lease, the remaining rental adjustments called for in this section shall be made using the formula set forth in Section III of this lease, but substituting the index numbers for the Consumer Price Index -Seasonally Adjusted U S City Average For All Items For All Urban Consumers (CPI-U) for the Index numbers for the CPI-U applicable to the Dallas -Fort Worth geographical region If both the EZELL AVIATION, INC LEASE AGREEMENT - PAGE 9 6 CPI-U for the Dallas -Fort Worth geographical region and the U S City Average are discontinued during the term of this lease, the remaining rental adjustments called for in this section shall be made using the statistics of the Bureau of Labor Statistics of the United States Department of Labor that are most nearly comparable to the CPI-U applicable to the Dallas -Fort Worth geographical region If the Bureau of i Labor Statistics of the United States Department of Labor ceases to exist or ceases to publish statistics called for in this section adjustments shall be made using the most nearly comparable statistics published by a recognized financial authority selected by Lessor 8 Payment Terms; All payments, including land rental, and fees, will be due on the 15th of the month This payment will be for the prior month fees and the current month land rentals If payments are not received before or on the 15th, a 5% penalty will be due as of the 18th If payments are not received by the first of the subsequent month, an additional penalty of 1% of the unpaid rental/fee amount will be due A 1% charge will be added on the first of each subsequent month until unpaid rental/fee payment is made Failure to pay the rent, fee, or either monetary penalty amounts on delinquent rent or fees shall constitute an event of default of this Lease V LEASE TERMS A. The Fixed Bass ORerator: The term of this Lease shall be a period of thirty (30) years, commencing on the 1st day of May 1997, and ending at midnight on the 30th day of April, 2027, unless terminated under the provisions of this lease Lessee shall have the option to extend the term of this Lease for two additional ten (10) year periods subject to terms negotiated at that time between Lessor and Lessee If Lessee elects to exercise its option to renew this Lease, Lessee shall notify the City Manager, In writing, at least one hundred eighty (180) days before the expiration of the Initial thirty (30) year Lease At the end of the Initial ten (10) year option, Lessee shall have the option to extend the term of this Lease for an additional ten (10) years subject to terms negotiated at that time between Lessor and Lessee If Lessee elects to exercise this second option, Lessee shall notify the City Manager, in writing, at least one hundred eighty (180) days before the expiration of the Initial ten (10) years 8 Commercial Land, Tract D: The remaining term of this lease will be for a term of thirty (30) years, commencing on the 1st day of May, 1997, and continuing through the 30th day of April, 2027, unless earlier terminated under the provisions of the Agreement Lessee shall have the option to extend the term of this Lease for an additional period of ten (10) years subject to terms negotiated at that time between Lessor and Lessee If Lessee elects to exercise its option to renew this Lease, Lessee shall notify the City Manager, in writing, at least one hundred eighty (180) days before the expiration of the initial thirty (30) year Lease At the end of the Initial ten (16) year option, Lessee shall have the option to extend the tern of this Lease for an additional ten (10) years subject to terms negotiated at that time between Lessor and Lessee If Lessee elects to exercise this second option, Lessee shall notify the City Manager, In writing, at least one hundred eighty (180) days before the expiration of the initial ten (10) years VI. ASSIGNMENT OF LEASE Lessee expressly covenants that it will not assign this lease, nor sublet the whole or any part of the said premises for any purpose, except for rental of hangar space or tie -down space, without the written consent of Lessor, except that any person, corporation or institution that lends money to Lessee for the construction of any hangar, structure, building or Improvement upon the leased premises and retains a security interest in said hangar, structure, budding or improvement shall, upon default of Lessee's obligation to said mortgagee have the right to enter upon said leased premises and operate or manage said hangar, structure, budding or EZELL AVIATION, INC LEASE AGREEMENT -PAGE 10 Improvement according to the terms of this agreement, for a period not to exceed the term of the mortgage with Lessee, or until the loan is paid in full, but in no event longer than the term of this lease Lessor agrees that it will not unreasonably withhold Its approval of the sale or sublease of the facilities for airport related purposes VII. SUBROGATION OF MORTGAGE Any person, corporation or institution that lends money to Lessee for construction, purchase and or refinance of any hangar, structure, building or Improvement and retains a security interest in said hangar structure, building or improvement shall, upon default of Lessee's obligations to said mortgagee, have the right to enter upon said leased premises and operate or manage said hangar, structure, building or improvement according to the terms of this Agreement, for a period not to exceed the term of the mortgage with Lessee or until the loan Is paid In full, or such mortgagee shall have the right to remove any buildings or structures from the premises, however, If such mortgagee Is planning to remove any buildings, then they will notify Lessor in writing of such Intent to remove, and Lessor will have sixty (60) days from receipt of such notice to exercise an option to purchase such buildings or structures under the provisions of Article II hereof it is expressly understood and agreed that the right of the mortgagee referred to herein is limited and restricted to those Improvements constructed with funds borrowed from mortgage, those improvements purchased with the borrowed funds, and those Improvements pledged to secure the refinancing of the improvements VIII RIGHT OF EASEMENT Lessor shall have the right to establish easements, at no cost to Lessor, upon the leased ground space for the purpose of providing utility services to, from or across the airport property However, any such easements shall not Interfere with Lessee's use of the "leased ground space" and Lessor shall restore the property to Its original condition upon the installation of any utility services on, in, over or under any such easement IX CANCELLATION OF LEASE A Cancellation by Lessor: In the event that Lessee shall file a Voluntary petition in Bankruptcy or proceedings in bankruptcy shall be Instituted against it and Lessee thereafter is adjudicated bankrupt pursuant to such proceedings, or any court shall take jurisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any Federal reorganization act, or Lessee shall be divested of its estate herein by other opef8tion of law, or Lessee shall fail to perform, keep and observe any of the terms, covenants, or conditions herein contained, or on its part to be performed, the Lessor may give Lessee written notice to correct such condition or cure such default and, if any condition or default shall continue for thirty (30) days after the receipt of such notice by Lessee, then Lessor may, terminate this lease by a thirty (30) days written notice to Lessee In the event of default, Lessor has the right to purchase any or all structures on the leased premises under the provisions of Article II hereof B. Cancellation by Losses: Lessee may cancel this Agreement, in whole or part, and terminate all or any of its obligations hereunder at any time, by thirty (30) days written notice, upon or after the happening of any one of the following events (1) issuance by any court of competent jurisdiction of a permanent injunction in any way preventing or restraining the use of said airport or any part thereof for airport purposes, (2) any EZELL AVIATION, INC LEASE AGREEMENT - PAGE 11 action of the Civil Aeronautics Board and/or Federal Aviation Agency refusing to permit Lessee to operate into, from or through said airport such aircraft as Lessee may reasonably desire to operate thereon, the breach by Lessor of any of the covenants or agreements contained herein and the failure of Lessor to remedy such breach for a period of thirty (30) days after receipt of a written notice of the existence of such breach, (3) the inability of Lessee to use said premises and facilities continuing for a longer period than ninety (90) days due to any law or any order, rule or regulation of any appropriate governmental authority having jurisdiction over the operations of Lessor or due to war, earthquake or other casualty, or (4) the assumption or recapture by the United States Government or any authorized agency thereof of the maintenance and operation of said airport and facilities or any substantial part or parts thereof X. SPECIAL CONDITIONS It is especially understood and agreed by and between Lessor and Lessee that this lease agreement is subject to the following special terms and conditions A. Nothing contained herein shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 1349 of Title 49, United States Code Annotated B. Lessor reserves the right to further develop or Improve any public parking area, landing area, or other portion of the airport property without notice to Lessee C During time of war or national emergency, declared by the Congress or the President of the United States, Lessor reserves the right to alter, amend, or suspend this agreement upon demand of military, or naval authorities of the United States D. Lessee, Its personal representative, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, that in the construction of any Improvements on, over, or under such land and the furnishing of services thereof, no person on the grounds of race, color or national origin shall be excluded from participation In, denied the benefits of, or otherwise be subjected to discrimination, that the Lessee shall use the premises In compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally -assisted programs of the Department of Transportation -Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended That in the event of breach of any of the above nondiscrimination covenants, Lessor shall have the right to terminate the lease and to re-enter and repossess said land and the facilities thereon, and hold the some as if said lease had never been made or issued E. The Lessee assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to insure that no person shall on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14 CFR Part 152 Subpart E The Lessee assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by this subpart The Lessee assures that it will require that its covered suborganizations provide assurances to the Lessor that they EZELL AVIATION, INC LEASE AGREEMENT - PAGE 12 similarly will undertake affirmative action programs and that they will require assurances from their suborganlzatlons, as required by 14 CFR Part 152, Subpart E, to the same effect F If Lessor files an action to enforce any covenant, term or condition of this lease, or for the recovery of the possession of the leased area, or for breach of any covenant, term or condition of this lease, then Lessee agrees to pay to Lessor reasonable attorneys fees for the services of Lessor's attorney in such action as part of the costs Incurred, such attorneys fees to set by the Court O Lessor's waiver or breach of one covenant or condition of this lease shall not be deemed a waiver of subsequent breaches of other provisions, and Lessor's acceptance of rental payments shall not be deemed a waiver of any of the provisions of this lease H Lessee shall be provided access to the property leased hereunder either through access "A" or access "B", at Lessor's discretion, as shown on Exhibits "A," "B," and "C " attached hereto and incorporated herein by reference Lessor reserves the right to change Lessee's means of Ingress and egress from one designated access to another at Lessor's option I Runways and Taxiways: That because of the present sixty thousand (60,000) pound continuous use weight bearing capacity of the runway and taxiways of the Airport, Lessee harem agrees to limit all aeronautical activity including landing, takeoff and taxiing, to aircraft having an actual weight, including the weight of Its fuel, of sixty thousand (60,000) pounds or less, until such time that the runway and designated taxiways on the Airport have been improved to handle aircraft of such excessive weights It is further agreed that, based on qualified engineering studies, the weight restrictions and provisions of this clause may be adjusted, up or down, and that the Lessee agrees to abide by any such changes or revisions as such studies may dictate "Aeronautical Activity" referred to in this clause shall include that activity of the Lessee or its agents or subcontractors, and its customers and invitees but shall not include those activities which it neither controls nor solicits, such as an unsolicited or unscheduled or emergency landing Negligent disregard of the provisions of this section shall be sufficient to cause the Immediate termination of this entire Agreement and subject the Lessee to be liable for any damages to the Airport that might result J Principles of Operations: The right to conduct aeronautical activities for furnishing services to the public is granted the Lessee subject to Lessee agreeing, To furnish said services on a fair, equal and not unjustly discriminatory basis to all users thereof, and, To charge fair, reasonable and not unjustly discriminatory prices for each unit or service, provided, that the Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers K. Rlaht of Individuals to Maintain Aircraft, It is clearly understood by the Lessee that no right or privilege has been granted which would operate to prevent any person, Arm or corporation operating aircraft on the airport from performing any services on its own aircraft with Its own regular employees (including, but not limited to, maintenance and repair) that it may choose to perform L. Public Areas - Lessor reserves the right to further develop or Improve the landing area of the airport as it sees fit, regardless of the desires or views of the Lessee, and without interference or hindrance EZELL AVIATION, INC LEASE AGREEMENT - PAGE 13 Lessor shall be obligated to maintain and keep In repair the landing area of the airport and all publicly owned facilities of the airport, together with the right to direct and control all activities of Lessee In this regard During time of war or national emergency, Lessor shall have the right to lease the landing area or any part thereof to the United States Government for military or naval use, and, if such lease Is executed, the provisions of this Instrument Insofar as they are inconsistent with the provisions of the lease to the Government, shall be suspended Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the airport against obstruction, together with the right to prevent Lessee from erecting, or permitting to be erected, any building or other structure on or adjacent to the airport which, in the opinion of the Lessor, would limit the usefulness or safety of the airport or constitute a hazard to aircraft or to aircraft navigation This Lease shall be subordinate to the provisions of any existing or future agreement between Lessor and the United States or agency thereof, relative to the operation or maintenance of the Airport XI INSURANCE A. Required Insurance. Lessee, at its expense, shall maintain continuously in effect at all times during the term of this agreement the following insurance coverage 1 Comprehensive general liability covering the leased premises, the Lessee or its company, its personnel, and Its operations on the Airport 2 Aircraft liability to cover all flight operations of Lessee 3 Fire and extended coverage for replacement value for all facilities used by the Lessee either as a part of this agreement or erected by the Lessee subsequent to this agreement 4 Liability Insurance limits shall be in the following minimum amounts Bodily Injury and Property Damage One Million Dollars ($1,000,000) combined single limits on a per occurrence basis 5 All policies shall name the City of Denton as an additional named insured and provide for a minimum of thirty (30) days written notice to the City prior to the effective date of any cancellation or lapse of such policy 6 All policies must be approved by the Lessor 7 The Lessor shall be provided with a copy of all such policies within thirty (30) days of the signing of this Agreement During the original or extended term of this Lease, Lessor herein reserves the right to adjust or Increase the liability insurance amounts required of the Lessee, and to require any additional rider provisions, or certificates of insurance, and Lessee hereby agrees to provide any such insurance requirements as may be required by Lessor, provided however, that any requirements shall be commensurate with Insurance requirements at other public use airports similar to the Denton Municipal EZELL AVIATION, INC LEASE AGREEMENT - PAGE 14 Airport, in size and in scope of aviation activities, located in the southwestern region of the United States Lessee herein agrees to comply with all increased or adjusted insurance requirements that may be required by the Lessor throughout the original or extended term of this Lease, including types of insurance and monetary amounts or limits of Insurance, and to comply with said insurance requirements within sixty (00) days following the receipt of a notice in writing from Lessor stating the increased or adjusted Insurance requirements Lessee shall have the right to maintain In force both types of insurance and amounts of insurance which exceed Lessor's minimum Insurance requirements In the event that State Idw should be amended to require additional types of Insurance and/or insurance amounts which exceed those of like or similar public use airports in the southwestern region of the United States of America, then in such event, Lessor shall have the right to require that Lessee maintain in force types of insurance and/or amount of insurance as specified by State law Failure of Lessee to comply with the minimum specified amounts or types of insurance as required by Lessor shall constitute Lessee's default of this Lease B. INDEMNITY: During all times that this lease Is In effect, the parties agree that Lessee Is and shall be deemed to be an Independent contractor and operator and not an agent or employee of City with respect to Its acts or omissions hereunder For all the purposes hereunder, Leases is and shall be deemed an Independent contractor and it is mutually agreed that nothing contained herein shall be deemed or construed to constitute a partnership or joint venture between the parties hereto. Lessee agrees to Indemnify and hold harmless the City and Its agents, employees, and representatives from and against all liability for any and all claims, suits, demands, and/or actions arising from or based upon Intentional or negligent acts or omissions on the part of Lessee, Its agents, representatives, employees, members, patrons, visitors, contractors and subcontractors (If any), and/or sublessee, which may arise out of or result from Lessee's occupancy or use of the premises and/or activities conducted In connection with or incidental to this Lease Agreement. Lessee shall also Indemnify City against any and all mechanic's and materialmen's liens or any other types of liens Imposed upon the premises demigod hereunder arising as a result of Lessee's conduct or activity. This Indemnity Provision extends to any and all such claims, suits, demands, and/or actions regardless of the type of relief sought thereby, and whether such relief is in the form of damages, judgments, and costs and reasonable attorney's fees and expenses, or any other legal or equitable form of remedy. This indemnity Provision shall apply regardless of the nature of the Injury or harm alleged, whether for Injury or death to persons or damage to property, and whether such claims by alleged at common law, or statutory or constitutional claims, or otherwise. This Indemnity Provision shall apply whether the basis for the claim, suit, demand, and/or action may be attributable In whole or In part to the Lessee, or to any of Its agents, representatives, employees, members, patrons, visitors, contractors (if any), and/or sublessee or to anyone directly or Indirectly employed by any of them Further, City assumes no responsibility or liability for harm, Injury, or any damaging events which are directly or Indirectly attributable to premise defects or conditions which may now exist or which may hereafter arise upon the premises, any and all such defects being expressly waived by Lessee. Lessee understands and agrees that this Indemnity Provision shall apply to any and all claims, suits, demands, and/or actions based upon or arising from any such claim asserted by or on behalf of Lessee or any of Its members, patrons, visitors, agents, employees, contractors and subcontractors (if any), and/or subleases EZELL AVIATION, INC LEASE AGREEMENT - PAGE 15 It Is expressly understood and agreed that the City shall not be liable or responsible for the negligence of Lessee, Its agents, servants, employees and customers. Lessee further agrees that It shall at all times exercise reasonable precautions for the safety of and shall be solely responsible for the safety of Its agents, representatives, employees, members, patrons, visitors, contractors and subcontractors (If any), and/or sublessees, and other persons, as well as for the protection of supplies and equipment and the property of Lessee or other persons Lessee further agrees to comply with all applicable provisions of Federal, State and municipal safety laws, regulations, and ordinances PROVIDED FURTHER, that the Lessee and the City each agree to give the other party prompt and timely notice of any such claim made or suit Instituted which In any way, directly or Indirectly, contingently or otherwise, affects or might affect the Lessee or the City Lessee further agrees that this Indemnity Provision shall be considered as an additional remedy to City and not an exclusive remedy. XII. STANDARDS Lessee shall meet or exceed the following standards A. Address: Lessee shall file with the City Manager's airport designee and keep current its mailing address, telephone number(s) and contacts where he can be reached in an emergency B Ljl: Lessee shall file with the City Manager's airport designee and keep current a list of its tenants and subleases C. Conduct: Lessees shall contractually require its employees and sublessee (and sublessee's invitees) to abide by the terms of this agreement Lessee shall promptly enforce Its contractual rights in the event of a default of such covenants D Utilities. Taxes and Fees: Lessee shall meet all expenses and payments In connection with the use of the Premises and the rights and privileges herein granted, including the timely payment of utilities, taxes, permit fees, license fees and assessments lawfully levied or assessed E LM- Lessee shall comply with all current and future federal, state and local laws, rules and regulations which may apply to the conduct of business contemplated, including rules regulations and ordinances promulgated by Lessor, and Lessee shall keep in effect and post in a prominent place all necessary and/or required licenses or permits F. Maintenance of Property, Lessee shall be responsible for the maintenance repair and upkeep of all property, buildings, structures and Improvements, Including the mowing or elimination of grass and other vegetation on the Premises, and shall keep said Premises neat, clean and in respectable condition, free from any objectionable matter or thing O Unauthorized Use of Premises: Lessee may not use any of the leased land or premises for the operation of a motel, hotel, restaurant, private club or bar, apartment house, or for industrial commercial or retail purposes, except as authorized herein H Dwellings: It is expressly understood and agreed that no permanent dwelling or domicile may be built, moved to or established on or within the leased premises nor may the Lessee, his tenants invitees, or guests be permitted to reside or remain as a resident on or within the leased premises or other airport premises EZELL AVIATION, INC LEASE AGREEMENT - PAGE 16 I Chemicals: Lessee agrees to property store, collect and dispose of all chemicals and chemical residues, to properly store, confine, collect and dispose of all paint, including paint spray in the atmosphere, and paint products, and to comply with all Local, State and Federal regulations governing the storage, handling or disposal of such chemicals and paints J j} M: During the term of this Agreement Lessee shall have the right, at its own expense, to place In or on the lease Premises signs Identifying Lessee Said signs shall be of a size, shape and design, and at a location or locations, approved by the Lessor and in conformance with any overall directional graphics or sign program established by Lessor on the Airport Lessor's approval shall not be withheld unreasonably Said signs shall be maintained in good repair throughout the term of this agreement Notwithstanding any other provision of this agreement, said signs shall remain the property of Lessee Lessee shall remove, at Its expense, all lettering, signs and placards so erected on the premises at the expiration of the term of this Agreement or extensions thereof XIII. COVENANTS BY LESSOR Lessor hereby agrees as follows A. To provide and pay for the Installation and monthly electricity required for security lighting at the airport which Lessor requires to be Installed under any safety or fire regulations, or as may be required by Lessor, B To maintain the airport In an acceptable condition for general aviation activities on said airport, C Lessor covenants and agrees not to enter into any subsequent lease, contract, or agreement with any other person, firm or corporation for the operation of a fixed base general aviation operation or business similar to Lessee's business on the airport containing more favorable terms than this agreement or not accorded to Lessee hereunder unless the same rights, privileges and concessions are concurrently and automatically made available to Lessee D That on payment of the rent, fees, and performance of the covenants and agreements on the part of Lessee to be performed hereunder, Lessee shall peaceably hold and enjoy the leased premises and all the rights and privileges herein granted E. Lessor warrants and represents that In the establishment, construction and operation of the said Denton Municipal Airport, that Lessor has heretofore and at this time is complying with all existing rules regulations, and criteria distributed by the Federal Aviation Agency, Civil Aeronautics Board or any other governmental authority relating to and Including, but not limited to, noise abatement, air rights and easements over adjoining and contiguous areas, over -flight in landing or take -off, to the end that Lessee will not be legally liable for any action of trespass or similar cause of action by virtue of any aerial operations over adjoining property In the course of normal take -off and landing procedures from said Denton Municipal Airport, Lessor further warrants and represents that at all times during the term hereof, or any renewal or extension of the same, that it will continue to comply with the foregoing XIV. COVENANTS BY LESSEE Lessee hereby agrees as follows A To indemnify and hold harmless the Lessor from and against all loss and damages, including death, personal Injury, loss of property or other damages, ansing or resulting from the operation of Lessee's business in and upon the leased premises EZELL AVIATION, INC LEASE AGREEMENT • PAGE 17 B. Not to make or suffer any waste to be made of the premises and will keep said premises neat, clean and respectable condition, free from objectionable matter or thing C. To observe and comply with all current and future laws and ordinances and all regulations of federal, state, county or city airport authorities or agencies having jurisdiction over the conduct of operations at the airport D To keep adequate records of Income and expenses and make such records reasonably available, upon request, to the Director of Finance of the City of Denton, Texas E. Lessee will quit possession of all premises leased herein at the end of the primary term of this lease or any renewal or extension thereof, and deliver up the premises to Lessor in as good condition aslexisted when possession was taken by Lessee, reasonable wear and tear excepted F Lessee shall, at Its expense, procure all licenses, certificates, permits, or other authorization from any and all governmental authorities, if any, having jurisdiction over the operations of Lessee XV. MISCELLANEOUS PROVISIONS A Utilities Lessee shall provide all ufilibes for the premises leased to Lessee at Its own cost and expense, Utilities shall also Include any security lighting required by Lessee for the convenience of customers of Lessee Lessee shall have the right to connect to the airport water line now existing and to connect to any future utility lines at Lessee's expense B. Entire Agreement This Agreement constitutes the entire understanding, between the parties and as of Its effective date supersedes all prior or independent Agreements between the parties covering the subject matter hereof Any change or modification hereof shall be in writing signed by both parties C. Binding Effect All the covenants, stipulations and agreements herein shall extend to bind and inure to the benefit of the legal representatives, successors and assigns of the respective parties hereto D. Severabllity. If a provision hereof shall be finally declared void or illegal by any court or administrative agency having jurisdiction, the entire Agreement shall not be void, but the remaining provisions shall continue in effect as nearly as possible in accordance with the original intent of the parties E. Notice. Any notice given by one party to the other In connection with this Agreement shall be in writing and shall be sent by registered mail, return receipt requested, with postage and registration fees prepaid If to Lessor, addressed to City Manager City of Denton Denton, Texas 76201 EZELL AVIATION, INC LEASE AGREEMENT - PAGE 18 FKIIII II_ LL I ' ` If to Lessee, addressed to Mr Nelson Ezell Post Office Box 1793 Breckenridge, Texas 76424 Notices shall be deemed to have been received on the date of receipt as shown on the return receipt F Headings The headings used In this Agreement are Intended for convenience of reference only and do not define or limit the scope O Ooverninu Law This agreement Is to be Construed in accordance with the laws of the State of Texas IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written ATTEST JENNIFER WALTERS CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY CITY OF DENTON LESSOR BY TED BENAVIDES CITY MANAGER EZELL AVIATION, INCORPORATED BY NELSON EZELLL TITLE � AO >� EZELL AVIATION INC LEASE AGREEMENT - PAGE 19 THE STATE OF TEXAS § COUNTY OF DENTON § This Instrument was acknowledged before me on the _ day of 1997 by Nelson Ezell My Commission Expires NOTARY PUBLIC, STATE OF TEXAS EZELL AVIATION, INC LEASE AGREEMENT - PAGE 20 nxiIIRIT "A" I LZ ,,,y,�•t TRACT A as IAN wr mo% u FBO TRACT "A" - shaded area *4* M Access "A" �iq Je 0 MEM JO /M re EXHIBIT "B" PA`11 ASPHALT 427 7 W N 35' R F1A ER H 0.3 HA ER 02 01 y(1►L � 2 41 ACRES RACT D 0-91 g 0 N FO 051 L'VA NDO. R9 p52� 8 10 in 469 W �'1 $ �r3510 E 280.00' �o 1.6934 ACRES N 7 r 35 OCi z 1RACT 91 FOX-51 LIMfVNO R91-052, 8-20- z u► 4 a RESOLUION �tjoLn y s o O ,y'�y1 �� to W W Rl wnw WOO"S 7139,91 T36'29p'N w in N E o Z g 154.52' • E A S 89'09'21"W 902 71' O1O � �n n0 �a N 7T3 8 FBO Tracts "B" and "c" EXHIBIT "C" PA��NO �pNA1.1 A27.17 35.p�j'E HANGER N 1T N0.3 HANGER Z NNo1, NO 2 r �'N' N ACRES �f �' 2•4135-20..91 TOO U LIMBED. N 91-052. 8 R gOX-51 ION NO R g RESOLD 448•g3 W r W Oti . N 7.T35 Od, E '480 OOP{RAC, " u E .3934 S 8 N r OX-51 O N0, R91 52. N N FRESOLIJI u; y1 n gh-b y5 uj wnw S 1T .2g'W y I bo �n N 154 • lei Z , E 8909'21") 36. Commercial Tract p IV . 0 4> to F sLumt LCL Our Neurunu ONmNcd A la ♦utmJmcm to li I[ I am Ea[ ORDINANCE NO 9�- 4/3 / AN ORDINANCE AUTHORIZING THE FIRST AMENDMENT TO AIRPORT LEASE AGREEMENT COMMERCIAL/FBO BETWEEN THE CITY OF DENTON AND EZELL AVIATION, INC, AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, certain real property upon the Denton Municipal Airport was leased to Ezell Aviation, Inc, a Texas Corporation, by an Airport Lease Agreement CommerciaUFBO effective May 1, 1997 WHEREAS, the City of Denton and the lessee desire to amend the lease agreement, and WHEREAS, the Airport Advisory Board for the City of Denton has recommended approval of the First Amendment, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the attached First Amendment to Airport Lease Agreement CommerciaUFBO between the City of Denton and Ezell Aviation, Inc is approved SSECTION II That the City Manager is authorized to execute the attached lease amendment on behalf of the City and the City Secretary is directed to affix this ordinance with the executed lease amendment to the Airport Lease Agreement CommerciaUFBO effective May 1, 1997, inscribing on the original agreement the fact it has been amended and the effective date of the amendment SECTION III That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the day of > 1998 F - ATTEST JENNIFER WALTERS, CITY SECRETARY BY V� a—LIM'16 APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY Q Z -C FIRST AMENDMENT TO AIRPORT LEASE AGREEMENT COMMERCIAL/FBO STATE OF TEXAS COUNTY OF DENTON WHEREAS, this First Amendment To Airport Lease Agreement Commercial/FBO ("Amendment") is entered into by and between the City of Denton ("Lessor") and Ezell Aviation, Inc ("Lessee"), and WHEREAS, on or about May 1, 1997, an Airport Lease Agreement Commercial/FBO ("Airport Lease") was effective by and between the City of Denton and Ezell Aviation, Inc, and WHEREAS, Lessee and Lessor desire to amend the Airport Lease in order to evidence certain additional agreements between Lessor and Lessee, and WHEREAS, as partial consideration for the Amendment, Lessee has constructed a public ramp on property immediately adjacent to the Premises and desires to release Lessor from any and all claims, causes of action, and suits in equity ansing out of or in any way related to the construction of the public ramp and/or ansing out of or in any way related to the Airport Lease through the date of this Amendment, NOW, THEREFORE, in consideration of the mutual promises and agreements contained in this Amendment, including the recitals set forth above, the parties agree as follows 1 All of Article II, Section B of the Airport Lease relating to the Improvement Requirements is hereby and herewith amended to read as follows B. Improvement Requirements. 1 In making any improvements on the Premises, Lessee shall comply with the following a All requirements of the Lessor's Land Development Code, other than platting requirements, including but not limited to Lessor's Budding, Fire, Electrical, and Plumbing Codes, and other Codes and ordinances applicable to the improvements to be made, including the payment of any fees established by ordinance b Prior to commencing development, Lessee shall obtain the City Council's determination that the improvements conform to and are compatible with the overall Amendment to Airport Lease Agreement Commercial/FBO Page 1 of 5 size, shape, color, quality, design, appearance, and general plan of the program established by the Lessor's Master Plan for the Airport c Any rules or regulations of any and all Federal or State agency having Jurisdiction thereof d Construction of drainage improvements, as required by City's subdivision rules and regulations, located at boundary between FBO Tracts "B" and "C" to be completed prior to any development pursuant to Section II (B) (1) (f) listed herein below e The remodeling of approximately 7,000 square feet of the existing FBO facility to be completed June 1, 1999 f Construction of new structure(s) totaling of approximately 12,000 or more square feet to be completed by June 1, 2003 The Lessor agrees to pay ten (10) percent of construction costs of the drainage improvements which are described in paragraph II (B) (1) (d) above These costs will not be eligible for payment until they have been reviewed and found to be accurate and reasonable by the City of Denton Engineering Department Such costs will not be paid until completion of improvements listed in 4, 5, and 6 above The ten (10) percent credit will be refunded in twelve monthly increments by reduction of the monthly land lease payments to begin the first month after completion of 4, 5, and 6 above Lessee shall maintain the public ramp located west of Tracts A and C and between Taxiway A, for a period of three (3) years following the execution of this Amendment Lessee, at Lessee's sole costs and expense during said three (3) year period, shall keep the said public ramp in good, clean condition, and shall make all needed repairs If any repairs required to be made by Lessor hereunder are not made within thirty (30) days after written notice delivered to Lessee by Lessor, Lessor may at its option make such repairs without liability to Lessee for any loss or damage of any and every kind by reason of such repairs, and Lessee shall pay to Lessor on demand as additional rental under this Airport Lease the cost of the repairs together with interest at the maximum legal rate in effect in the State of Texas from the date of payment by Lessor until repaid by Lessee 4 Article III, Section C of the Airport Lease is hereby and herewith added and reads as follows C Credits Lessor shall credit Lessee a total of $12,545 40 over a five (5) year period from this lease at a rate of $209 09 per month ($2,509 08 per year) for the construction of the a new public access aircraft ramp located west of Tracts A and C and between Taxiway A and the release of any and all claims related thereto Said monthly credit amount shall begin as of 1998 All of Article XIV of the Airport Lease is hereby and herewith amended to read as follows XIV COVENANTS BY LESSEE Lessee hereby agrees as follows A To indemnify and hold harmless the Lessor from and against all loss and damages, including death, personal injury, loss of property or other damages, arising or resulting from the operation of Lessee's business in and upon the leased premises Amendment to Airport Lease Agreement CommerciaVFBO Page 2 of 5 B. As the administrator of an aviation fuel dispensing operation, Lessee shall indemnify and hold harmless the Lessor, Lessor's successors, assigns, servants, agents, employees, of and from any and all claims, demands, actions, causes of action or suits in equity of any and every kind or character, arising out of or in any way related to fuel releases that occur on the Premises, airport property, City of Denton Property, and/or the property adjacent thereto If such a release occurs, Lessee shall be responsible for mitigation and remediation efforts as required by the Texas Natural Resource Conservation Commission, the U S Environmental Protection Agency, and/or any and all other governmental agencies C Not to make or suffer any waste to be made of the premises and will keep said premises neat, clean and respectable condition, free from objectionable matter or thing D To observe and comply with all current and future laws and ordinances and all regulations of federal, state, county or city airport authorities or agencies having jurisdiction over the conduct of operations at the airport E To keep adequate records of income and expenses and make such records reasonably available, upon request, to the Director of Finance of the City of Denton, Texas F Lessee will quit possession of all premises leased herein at the end of the primary term of this lease or any renewal or extension thereof, and deliver up the premises to Lessor in as good condition as existed when possession was taken by Lessee, reasonable wear and tear excepted G Lessee shall, at its expense, procure all licenses, certificates, permits, or other authorization from any and all governmental authorities, if any, having jurisdiction over the operations of Lessee H Lessee shall, in the course of marketing its own goods and services, market and promote the Denton Municipal Airport and various events held at the Denton Municipal Airport This Amendment is intended to amend the provisions of the Airport Lease only to the extent expressly set forth above All of the terms covenants, provisions, and conditions set forth in the Airport Lease are ratified and confirmed except as expressly modified by this Amendment This Agreement shall be binding upon and shall inure to the benefit of the respective successors and assigns of Lessor and Lessee In partial consideration for the amendments referenced herein above, Lessee does hereby and herewith release Lessor of and from any and all claims, causes of action, and/or suits in equity ansing out of or in any way related to the construction of the public ramp located west of Tracts A and C and between Taxiway A Lessee does hereby and herewith also release Lessor of and from any and all claims, causes of action, and/or suits in equity ansing out of or in any way related to this Airport Lease prior to the execution of this Amendment Amendment to Airport Lease Agreement CommerciaVFBO Page 3 of s IN TNESS WH REOF, the parties have executed this Amendment as of the 01 day of =998 ATTEST JENNIFER WALTERS, CITY SECRETARY B U C uuz APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY CITY OF DENTON, LESSOR EZELL AVIATION, INCORPORATED BY NELSON EZEL^LL TITLE CA' 4 k/J-^ Amendment to Airport Lease Agreement CommerciaVFBO Page 4 of 5 THE STATE OF TEXAS COUNTY OF DENTON This instrument was acknowledged before me on the ,,2q�day of Woo 1998 by Nelson Ezell =NOTABYPUBLIC 2000 NOTARY P BLP , STATE OF TEXAS My Commission Expires Amendment to Airport Lease Agreement CommercraVFBO Page 5 of 5 ORDINANCE NO 57001-11(0 AN ORDINANCE AUTHORIZING THE CITY MANGER TO EXECUTE AN AMENDMENT TO THE COMMERCIAL AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND EZELL AVIATION, INCORPORATED WHICH WAS ADOPTED PER ORDINANCE NO 97-132 TO ALLOW FOR THE AUTHORIZATION OF COMMERCIAL, RETAIL, OR INDUSTRIAL BUSINESS UPON LEASED PREMISES WITHOUT FORMAL WRITTEN CONFIRMATION OF THE CITY COUNCIL, AND PROVIDING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 The City Manager is authorized to execute an amendment to the commercial lease agreement between the City of Denton, Texas and Ezell Aviation Incorporated, which was approved per Ordinance No 97-132 to allow for the authorization of commercial, retail or industrial business upon leased premises without formal written confirmation of the city council, under the terms and conditions contained within the amendment, which is attached hereto and made a part hereof SECTION 2 This ordinance shall become effective immediately upon its passage and approval ,, PASSED AND APPROVED this the k h day of ///Q, dk 2001 &.� A04- EUMNE BROCK, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY BY 0(]qDjj 41aZ&a� APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY ( T/ ` L s �Ouru oin�ils roiipm«n MCII amen Lou n.m lea AMENDMENT TO AIRPORT LEASE AGREEMENT BETWEEN EZELL AVIATION, INCORPORATED AND THE CITY OF DENTON, TEXAS THE STATE OF TEXAS § COUNTY OF DENTON § KNOW ALL MEN BY THESE PRESENTS: WHEREAS, Ezell Aviation, Incorporated have indicated that certain provisions of the May 6, 1997 Lease Agreement between itself and the City of Denton, Texas, Lessor, are causing difficulty in securing a viable use of the leased premises, and WHEREAS, Lessor desires to cooperate in the Lessee's interest in its lease premises at the Denton Municipal Airport, ///�' This Lease Amendment ("Amendment") is made and executed this &miday of March, 2001, at Denton, Texas, by and between the City of Denton, Texas, a municipal corporation, hereinafter referred to as "Lessor," and Ezell Aviation, Incorporated referred to as "Lessee " This Amendment amends the Lease Agreement executed on May 6, 1997 (the "Agreement") between Lessor and Lessee to the extent contained herein only, all other provisions of the Agreement not specifically modified herein remain in full force and effect as originally written The last paragraph of Article I D of the Agreement is hereby amended to read as follows I PREMISES AND USE D USE OF COMMERCIAL LAND PREMISES (TRACT "D" ) Lessee, his tenants and sublessee shall not be authorized to conduct any services not specifically listed in this agreement The use of the lease premises of Lessee, Ins tenants or sub lessee shall be limited to only those private, commercial, retail or industrial activities having to do with or related to airports and aviation No person, business or corporation may operate a commercial, retail or industrial business upon the premises of Lessee or upon the Airport without authorization from the Lessor in written form The City shall respond to the request for authorization within sixty (60) days of written notification to Lessor's City Manager If authorization is not received within the required sixty-day tune period, authorization of the activity will be considered granted This granting of authorization does not relieve the Lessee or its sublessee, successor, or assign of compliance with terms or conditions in this agreement IN WITNESS WHEREOF, the parties have executed this Amendment to the Agreement as of the day and year first above written ATTEST JENNIFER WALTERS, CITY SECRETARY BY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY CITY OF DENTON, TEXAS, LESSOR BY MICHAEL W JEZ, CITY MANAGER EZELL AVIATION, INCORPORATED, LESSEE BY / NEL ON EZELL, PR/ DENT THE STATE OF TEXAS COUNTY OF DENTON BEFORE ME the unde sedety, a Notary Public in and for said State of Texas, on this day personally appeared eZ: known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that this instrument was executed for the purposes and consideration therein expressed GIVE UNDER MY HAND AND SEAL OF OFFICE this 2001 �P �U ANFORSYTHE (\ Notary Publla, State of Taxes s�\ Myt)OilNhlitllen Expire, MAY ®� 2001 THE STATE OF TEXAS My Commission Expires day of COUNTY OF Stir § This instrument was acknowledged before me on the 2j2Ck day of MCLeC- L , 2001 by Nelson Ezell, in the capacity as noted in the foregoing instrument (&RHONCA G CLARK NOTARY PUBLIC STATE OF TEXAS My Commission Expires 12 9 2001 i )ch, NOTARY PUBLIC, STATE OF TEXAS My Commission Expires 1 01-0